Step by step, Huawei Has Become an Approved Supplier for Vodafone's Global 3G Supply Chain.



"Collecting sand will become Tower", with this sentence to describe the cooperation between Vodafone and Huawei is very appropriate.

In 2003, Vodafone carried through all-around Qualification Certification to Huawei;

In September 2005, Huawei became one of the preferred UMTS suppliers for Vodafone Group;

In October 2005, Vodafone, the largest international mobile communications operator, signed a Global Framework Agreement with Huawei;

In February 2006, in Barcelona, Spain, Vodafone and Huawei jointly announced that Huawei will supply 3G handsets for Vodafone across 21 countries for at least 5 years;

In February 2006, Huawei has been selected by Vodafone, to deliver and install the radio access part of its WCDMA/HSDPA network for certain key cities in Spain……

During the process, the world's largest mobile operator, Vodafone, with the world's fastest growing vendor, Huawei together, have composed cooperating legends one by one.

Spain, one of the leading and most competitive 3G markets in the world
Spain stands in the southwest of Asia-Europe continent, and is located as the throat among Europe, Africa, Atlantic and Mediterranean Sea. Europe is one of the leading and most competitive 3G markets in the world. While Spain possesses one of the fastest growing 3G subscriber rates and highest Average Revenue per User rates for operators. As a result, the marketplace in Spain is characterized by strong competition among global mobile operators as well as suppliers. Presently, more than 70% cities in Spain have been covered by WCDMA networks. In the mobile market of Spain, the top-tier mobile operators including Telefonica Moviles, Vodafone Spain, all competed market share in Spain.

Vodafone is one of the largest mobile operators in the world. It provides mobile services in 26 countries, and cooperates with its partners to provide mobile services in another 31 countries. The Vodafone networks worldwide serve 179 million subscribers. Vodafone, which is a loyal supporter of UMTS, spent about 20 billion pounds to obtain 3G licenses. Vodafone launched 3G commercial services in Japan at the end of 2002 and later launched 3G services in Europe and Australia. Vodafone Spain, with over 1.2 million 3G subscribers, is one of the most important and strongest performing operating companies within the Group. Over the 20 years, the successful global expansion strategy has been the most outstanding highlight for Vodafone leading the way of mobile communications industry. During the process, Vodafone gradually developed a series of prudent and practical expansion tactics, which include the selecting of suppliers.

Spain has been granted 3G licenses several years ago, nevertheless, Huawei came into Europe very late. Why did Huawei win out over other competitors? Why did Huawei win Vodafone's trust within such a short time?

Quality, wins trust
As a preferred supplier for Vodafone, Huawei meets the following requirements: advanced technologies, excellent product quality, mature management processes, international operation platform and abundant experience. As a result, "Huawei is in a strong position to support Vodafone!" refer to Vodafone Audit Feedback.

Vodafone Spain has done OPEX Efficiency test evaluation to their preferred suppliers. The result shows that: Huawei has lowest power consumption, best coverage capability and highest transmission efficiency. Huawei is the best OPEX efficiency UMTS supplier, and it can help Vodafone get the lowest OPEX with good service quality. The main reason is Huawei's new generation Node B solution meets operators' requirements of qualified, low integrated cost, fast network construction and future orientation: Highly efficient power amplifier technology which reduces the power consumption of Node B, the power amplifier efficiency reaches 33%, saving 32% of the electricity compared with conventional base stations; Multi-carrier transceiver which saves a large amount of manpower and time. In addition, this also enables operators to adapt more rapidly to the development of network capacity, enables smooth capacity expansion; Full performance HSDPA which facilitates smooth evolution and supports various terminals, helps to increase downlink data throughput and satisfy the requirement of high-speed data services; Open architecture uses remote radio frequency module technology, which is small in size, and features a large capacity, easy installation, and strong environment adaptability. Business consultation report shows, Huawei's new generation Node B, will save 30% TCO of Vodafone in 5 years.
"Huawei's innovative Node B solution within the radio access network, fully addresses our requirements for deploying a world-class 3G broadband (HSDPA) network. The Node B solution also enables us to significantly reduce our operating costs, maximize the benefits offered to customers and improve our competitive position in the marketplace," said Helmut Hoffmann, Director of Global Networks.

From the point of view of an equipment vendor, the deployment and quality of network are the two important parts in 3G network construction. Deployment has two meanings: one is enough coverage; the other is good inter-working with existing 2G networks.

Vodafone selected the high density area of Salamanca to test coverage capability of Huawei series of Node B, involve of Indoor Macro, Outdoor Macro, Mini Node B and Distributed Node B. Through sampling test, Huawei overall Ec/Io is higher than other testing vendor, and Huawei UMTS network KPI is very close to local GSM level. Huawei has better network performance compared with other vendors.

Network performance and Reliability are always the important elements which draw attention from operators; it is also the test emphasis of Vodafone.
In Spain, UMTS network deployed by Vodafone covers a main express railway. Under the case of high-speed mobility, the network performance decreased greatly and the voice call success rate measured was less than 56%. Vodafone had no choice but to stop the Node B serving the express railway. In November 2005, Vodafone conducted a test on the high-speed mobility of Huawei UMTS products. To Vodafone's surprise, when the express traveled at the speed of 250 kilometer per hour, such services as: voice, video phone, and internet surfing, remained stably even. For instance, the voice call success rate reached 99.7%. Finally, Huawei received a "very good" comment from Vodafone representatives.

In fact, within the coverage of Huawei UMTS, the quality of services can be ensured even on Shanghai maglev train at a speed of 430 kilometer per hour. Huawei has successfully solved the problem of 3G high-speed coverage and became the only supplier who passed the high-speed mobility test in the industry.

CTO of Vodafone Spain is amazed about resolution lead-time for high-speed train solution. It took Huawei less than a month to deliver a solution with over 98% call success rate along the high-speed train route whereas their supplier took a year to resolve this issue.

Huawei has been undergoing 3G coverage test in Vodafone Spain Headquarter Building, and provided 3G terminal to simulate network environment. Huawei swapped existing Node Bs covering building, and has excellent inter-working with existing 2G networks.

Cooperating closely, growing together
From September 2005, Huawei had been undergoing lab test and field trial for UMTS RAN performed by Vodafone in Spain. "HUAWEI has been TECHNICALLY VALIDATED as a 3G Supplier in Vodafone based on the trial results." Showed in Vodafone Spain Test Feedback Report. Huawei was ranked No. 1 in technical evaluation.

On August 8 2006, Huawei announced that it has been selected by the world's largest mobile operator, Vodafone, to deliver and install the radio access part of its WCDMA/HSDPA network for certain key cities in Spain. This once again provides a further endorsement of Huawei's credibility in the marketplace for delivering high quality, advanced capability, reliable products to fulfill the wide-ranging requirements of any developed and emerging markets.

Vodafone Spain has thousands of Node Bs, and there are near upon 50% Node Bs in Madrid and Barcelona. Huawei will install and swap thousands Node Bs for certain key cities in Spain in 3 years. "We are delighted to have Huawei as our strategic partner, and view their leading edge technology, professional service capability and in-depth understanding of network evolution as key drivers for our future cooperation," said Detlef Schultz, Director of Global Supply Chain Management.

Focusing on customers' requirements and innovation spirit, Huawei Wireless leaps to a new stage
Comment from consultation company says that, Huawei is a fast growing vendor. Based on its leading technical advantage, it can expand from point to plane in short order. From Transmission, Terminal, Radio Network, to Data Communication, Huawei will become a global supplier of Vodafone by category, and will achieve full-range global cooperation with Vodafone group in rapidly growing market.

"Huawei will be one of the most undeniable forces to the market structure change of telecom equipment delivery in the next five years", according to Scott Clavenna, chief analyst of Heavy Reading.

From a global view, although Huawei came into Europe very late, it enter into Top 3 worldwide, it's just a episode in the global structure change. Huawei is a leader in providing next generation telecommunications networks, and serves 28 of the world's top 50 operators, such as Telefonica Spain, Orange France, KPN Holland, etc. The company is committed to providing innovative and customized products, services and solutions to create long-term value and potential growth for its customers.